Bid to strip green groups' tax status

By Nassim Khadem and Canberra

Environmental groups and charities that run campaigns against the Government could lose their tax-deductible status.

Environment Minister Ian Campbell is looking for ways to strip the Wilderness Society of its status.

Last year, Forestry Minister Eric Abetz, in his former role as special minister of state, flagged limiting tax deductibility for trade unions, the Australian Conservation Foundation, the Wilderness Society and the RSPCA. He said the groups campaigned for Labor at the 2004 election and those who advertised against the Government should not be eligible for a higher level of deductibility.

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A spokesman for Senator Campbell yesterday confirmed that the Government was investigating whether the changes could be made in relation to the Wilderness Society, which is one of 700,000 non-government organisations across Australia that get tax-deductibility status.

The spokesman said Senator Campbell was "determined to ensure that donations to environmental groups are used for on-the-ground environmental purposes".

Forest Industries Association of Tasmania director Terry Edwards recently wrote to federal ministers, including Senator Abetz, asking for the Wilderness Society's status to be stripped because it campaigned against the Coalition's forests policy at the 2004 election.

But Wilderness Society acting campaigns director Virginia Young said the group had not breached tax laws. "We have been given a clean bill of health by the Tax Office," she said. "We have a charitable purpose to protect the environment . . . and that may mean challenging Government policies."

Ms Young said she called Senator Campbell's office last year to find out whether the Government was persisting with its plan but it did not return her call.

"If there's going to be an inquiry, then it's natural justice that we be told about it," she said.

"I find this really alarming."

The Wilderness Society and timber company Gunns Ltd have for years been engaged in a bitter dispute over the logging of Tasmania's forests. Gunns is a major Liberal Party donor - recently donating $70,000 - and the Howard Government, in turn, uses taxpayers' money to fund Gunns. At the 2004 election, the Government promised $5 million to help Gunns develop a pulp mill plan for Tasmania. So far the company has been given $2.4 million.

Labor environment spokesman Anthony Albanese said cuts to environmental groups would have "dire consequences for our environment and the tourism industry".

Last year, Senator Campbell capped funding grants to such groups under the Voluntary Environment and Heritage Organisations Program.

Greens leader Bob Brown said the Wilderness Society was the first on the Government's hit list but aid agencies would be next.

"You either support the Government or you are punished," he said. "The fact that this is coming from Ian Campbell is totally shameful. What other environment minister tries to strip environment advocacy groups of their funding?"